Chapter 6, Problem 2AP

Prepare a worksheet for Brown’s Plumbing and Heating. Write the heading for the worksheet for the fiscal period ending December 31, 20xx. Record the trial balance using the accounts and their balances from the Ledger tab. Some are done for you. Calculate and record the Supplies adjustment. There is $5,600.00 in supplies on hand at the end of the fiscal year. Calculate and record the Insurance adjustment. There is $900.00 of insurance coverage left at the end of the fiscal year. Prove the Adjustments columns. Extend all balance sheet account balances. Extend all income statement account balances. Calculate and record the net income or loss. Total and rule the Income Statement and Balance Sheet columns.

Use the following account T-balances (assume normal balances) and correct balance information to make the December 31 adjusting journal entries.   T-Account Balance Correct Balance Prepaid Insurance $26,000 $14,500 Salaries Payable $5,500 $6,200 Unearned Rental Revenue $8,000 $1,600 Supplies $8,500 $2,600 Interest Payable $2,400 $2,000 Accumulated Depreciation $24,000 $26,500 Prepaid Insurance: DR                             [ Select ]                          ["Prepaid Insurance", "Accounts Payable", "Insurance Expense", "Cash"]                                        [ Select ]                          ["$14,500", "$11,500", "$26,000"]            CR                             [ Select ]                          ["Cash", "Prepaid Insurance", "Insurance Expense", "Accounts Payable"]                                        [ Select ]                          ["$14,500", "$26,000", "$11,500"]               Salaries Payable: DR…

Use the following account T-balances (assume normal balances) and correct balance information to make the December 31 adjusting journal entries. Unearned Service Revenue: $24,000 T-Account Balance, $10,500 Correct Balance. Supplies: $8,500 T-Account Balance, $2,600 Correct Balance. Interest Payable: $2,400 T-Account Balance, $2,000 Correct Balance.

Adjustment Amount $5766.67, Net Income $49,408.33 Record the following transactions to the journal and post it to the T-accounts. Make a footing and get the ending balance of each account. Prepare your trial balance in the worksheet template. December 2021 2   Paid wages from last month $1,500. 4    additional investment of $5,000 from S. Joe’s savings account. 10  Collected $1,500 from fees earned previously. 15  Billed client for services rendered, $1,500 20  Paid wages expense $ 1,800. 23  Received telephone bill to be paid later, $150 25  Provided cleaning services in cash $1,000. 26  Purchase cleaning supplies on account $ 1,200. 27  Payment of accounts payable $1,000. 28  Paid gasoline $500. Record the following in the adjustment journal template then post it to the T-accounts. additional information for adjustments for December 31, 2021. Unexpired prepaid rent is $750. The annual prepaid insurance was paid Nov. 1 $2,500. Record the expired portion. Cleaning supplies on…

The balance in the prepaid insurance account before adjustment on December 31, 2007 is $5,000. The amount of expired insurance is $2,000. What account should be debited in the journal (1) and for what amount to record the adjusting entry for insurance based on this information?                                       JOURNAL                                                     Page     25 date description p.ref. debit CREDIT   Adjusting Entries       12/31 (1)   ?       (2)     ?   Group of answer choices Insurance Expense $2,000 Insurance Expense $3,000 Prepaid Insurance $3,000 Prepaid Insurance $2,000

Natalie had a very busy December. At the end of the month, after journalizing and posting the December transactions and adjusting entries, Natalie prepared the following adjusted trial balance. COOKIE CREATIONSAdjusted Trial BalanceDecember 31, 2019     Debit   Credit Cash   $900     Accounts Receivable   665     Supplies   270     Prepaid Insurance   920     Equipment   900     Accumulated Depreciation—Equipment       $30 Accounts Payable       55 Salaries and Wages Payable       43 Interest Payable       10 Unearned Service Revenue       230 Notes Payable       1,500 Owner’s Capital       610 Owner’s Drawings   380     Service Revenue       3,442 Salaries and Wages Expense   765     Utilities Expense   95     Advertising Expense   125     Supplies Expense   780     Depreciation Expense   30     Insurance Expense   80     Interest Expense   10         $5,920   $5,920…

Reconstruct the trial balance below after making the necessary corrections. Start with the balance on the trial balance and list only items that needs to adjusted. Show your workings   Trial balance of T Higgins as at 30 September 2019   Debit credit   £ £ Capital 19,956   Sales   119,439 Stationery 1,200   General Expenses 2,745   Motor expenses   4,476 Cash at bank 1,950   Inventory 7,668   Wages and salaries   9,492 Rent and Rates 10,500   Office equipment 6,000   Purchases 81,753   Heating and Lighting   2,208 Rent received 2,139   Account receivable 10,353   Drawings   4,200 Account payable   10,230 Motor Vehicle 7,500   Interest received 1,725   Insurance   3,444   153,489 153,489

Fill in the t-accounts for each situation and label each transaction as Deferrals/Prepaid or Accrual. Calculate the adjusted balance and use a Bal. post reference to show the ending balance of each account.   1. The unadjusted balance of Office Supplies at Dec. 31 is $10,500 and at year end the office supplies on hand totaled $2,540.   2. Used prepaid insurance of $2,720. The Prepaid Insurance unadjusted balance as of December 31 is $7,500.

Ivanhoe Advertising Company’s trial balance at December 31 shows Supplies $ 7,800 and Supplies Expense $0. On December 31, there are $ 3,500 of supplies on hand.Prepare the adjusting entry at December 31, and using T-accounts, enter the balances in the accounts, post the adjusting entry, and indicate the adjusted balance in each account. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)